Overview
Pakistan’s startup ecosystem witnessed a significant rebound in Q2 2025, marking the most active and well-funded quarter in nearly three years. With $60.2 million announced in total funding, the highest since Q3 2022, marking a dramatic return of funding activity The momentum was driven by a diverse mix of funding pathways. This quarterly total also exceeded the entire funding raised in 2024 ($42.5 million), underlining a renewed investor appetite and increasing maturity of key sectors.
Driving this resurgence was a $52 million raise by Haball, a fintech startup founded by Omer Bin Ahsan, which accounted for the lion’s share of the capital inflow. Two other startups, healthtech player MedIQ and ecommerce platform Atoms raised $6 million and $2 million, respectively. BeMe was one of the three startups to secure from the pool of $200,000 Village Capital funding.
Q2 Deal Flow: Six Deals, Three Disclosed
In total, six startup deals were recorded in Q2 2025, signaling modest deal activity but significant funding value. Of these:
- Three deals had publicly disclosed amounts, amounting to a combined $60.2 million.
- Three deals were in fintech, including the standout round by Haball. The other two are Metric and Lean Outset, both of which remained unannounced.
- Two deals were in healthtech: MedIQ and BeMe.
- One deal was in ecommerce: Atoms.
Fintech Reclaims the Spotlight
Once again, fintech dominated the funding landscape, attracting $52 million, or 86.3% of the quarter’s total announced funding and 50% of the total of six deals. This sector continues to lead the charge as it has in 2024, bolstered by a large unbanked population, demand for digital infrastructure, and regulatory encouragement.
Haball’s Game Changing Raise
At the heart of Q2’s record-setting quarter was Haball, a B2B payments and infrastructure startup that raised $52 million in a landmark pre-Series A round. Founded by Omer Bin Ahsan, Haball is focused on digitizing enterprise payments and supply chains in Pakistan, a space long plagued by inefficiencies. The total raise comprises $5 million in equity, led by Zayn VC, and $47 million in strategic debt financing from Meezan Bank marking the first major funding from a bank in Pakistan’s startup ecosystem. The funding will help Haball strengthen its position in Pakistan and expand into the GCC region, starting with Saudi Arabia in 2025. The company also plans to enter the UAE, Qatar, and other Middle Eastern and Asian markets.
Healthtech Shows Promise: MedIQ Secures $6M
Although fintech stole the spotlight, healthtech emerged as a standout sector in Q2, led by MedIQ’s $6 million Series A raise. Founded by Dr. Saira Siddiqui, MedIQ combines digital infrastructure, AI, and on-ground services to deliver integrated patient care across the healthcare spectrum. The round was led by Rasmal Ventures (Qatar) and Joa Capital (Saudi Arabia), with strong follow-on investment from existing backers. The funding round will be used to fuel MedIQ’s further expansion across a market sector worth SAR 7.2bn (almost $2bn) in Saudi Arabia.
Meanwhile, BeMe, a Pakistan-based mental health platform offering 24/7 access to certified therapists for individuals in Pakistan and the Pakistani diaspora, secured funding from Village Capital through a $200,000 investment shared with two other women-led ventures under Standard Chartered’s Futuremakers initiative, aimed at boosting women-led innovation across South Asia and MENA. The startup is also an alumni of i2i Scale, a three-month bespoke accelerator being run with support from the Visa Foundation.
Atoms Raises $2M in a ‘Unique’ Style
Atoms, a sneaker startup, raised $2 million in a private funding round from its own customers. This unique approach involved directly soliciting investments from their customer base, highlighting strong brand loyalty and product-market fit. CEO Sidra Qasim personally engaged with many of the 450 customer-investors to understand their connection with the brand and their vision for its future.
Gender Dynamics: Unequal but Not Unnoticed
A breakdown of Q2 funding through a gender lens reveals persistent inequality:
- 87% of the total funding amount went to male-founded startups.
- The remaining 13% flowed to female-led or co-founded startups, via MedIQ and Atoms. The amount of funding raised by BeMe From Village Capital, Lean Outset and Metric has not been publicly disclosed, so it is not included.
Investor Sentiment: Focused and Reawakening
Though the deal count remained modest at six, the high funding volume indicates a focused investor appetite:
- Fewer but larger deals reflect a preference for low-risk, growth-stage opportunities.
- Investor interest continues to skew toward sectors with regulatory support, clear market demand, and scalable solutions.
- The presence of a mega-deal like Haball’s may help revive dormant LP interest in Pakistan-focused funds, many of which had shifted their focus after 2022.
However, this level of concentration also means that early-stage startups and first-time founders may still struggle to attract funding unless they’re in hot sectors or have strong networks.
Challenges Remain
Despite the positive signals, several structural challenges continue to hold back the ecosystem:
- Seed and pre-seed funding remains limited, stalling the growth of new entrants.
- Exit opportunities are scarce, with no IPO market and few large-scale acquisitions.
- Policy uncertainty, especially regarding tax treatment and foreign investment, continues to make investor confidence fragile.
- Gender imbalance and urban concentration of startups (mainly in Karachi, Lahore, and Islamabad) persist.
Looking Ahead: What Q3 Might Hold
With Q2 marking a return to sizable funding, expectations are now rising for Q3. Key trends to watch:
- Will there be increased interest in climate tech, agri-tech, or AI sectors still largely unfunded in Pakistan?
- How will public-private initiatives, like accelerators or government-backed funds, respond to this funding rebound?
While Q2 proved that investor capital is available, sustainability will depend on consistent performance across more verticals, a broader base of founders, and better exit pathways.
Conclusion: A Quarter of Comeback, with Caveats
Q2 2025 was a quarter of rejuvenation for Pakistan’s startup scene. Six deals (three disclosed) brought in a total of $60.2 million, the highest in 10 quarters. The fintech sector remained the epicenter, with Haball’s historic raise leading the way. Healthtech and ecommerce also showed renewed promise.
However, the ecosystem’s next stage will require wider participation, gender inclusion, and deeper capital pools at the early stage. For now, the quarter stands as a powerful reminder: Pakistan’s startup ecosystem may bend under pressure but it hasn’t broken.